Affordable Housing Financing Plan (AHFP)
City Council
May 14, 2025
Government Code Section 54957.5 SB 343
Item 21 Agenda: 05/14/2025 REGULAR CC
Staff Recommendation
Staff recommends City Council consider and provide feedback on the proposed Affordable Housing Financing Plan (AHFP).
Updated every two years, the AHFP will guide the City's housing funding priorities
Plan Goals
• Outlines housing funding priorities (every other year) • Create three financing pathways: expected, surplus, and limited funding scenarios
• Provide implementation support for the City’s Housing Element and General Plan
• Provide strategies to stabilize housing fund revenue across fiscal years
Background
• City Council Study Session in 2021 and Housing Standing Committee in February 2025
• Need to strategically align affordable housing priorities with actual spending
• Growing need for financial strategy following creation of the Commercial Linkage Fee in 2018
• Commercial Linkage Fee generates considerable but fluctuating revenue • State/Federal regulatory requirements and funding programs are becoming stricter and harder to access
Housing Element
Alignment
• Every project targeted for funding cites the
Housing Element policy it furthers
• Many programs such as our nonprofit
housing programs are required by our
Housing Element (AFFH requirements)
• Plan provides pathways for various
financial scenarios to meet Housing
Element obligations
Plan Structure
Research Conducted
•Biennial plan managing funding commitments to projects and programs. •Established by ordinance in 2023 to guide spending of the City’s $970M Housing Levy funded by property tax levies •Provides guidelines for administering loans and grants •Sets administrative policy and includes reporting requirements Seattle Housing Levy Administrative and Financial Plan
•Mayor directive to the Housing Leadership Council and Housing Office to develop a funding strategy to assist implementation of the City’s 2022 Housing Element Update •Provides policy recommendations for increasing funding and making existing funding more efficient. •Outlines funding availability and funding projections. •Does not set policy or include reporting requirements
San Francisco Affordable Housing Funding and Financing Recommendations Report Plan Components
Funding Availability
Funding and Policy Parameters
Two Year Expected Funding Plan
Surplus/Limited Scenario Pathways
FY24-25 Projected Year End Fund Balances
Fund Source Projected FY24-25 Year End
Balance (approximate)
Commercial Linkage (823) $14,000,000
Affordable Housing Trust Fund (205) $200,000
LMI Housing Asset Fund (241) $1,000,000
Grant Award Funding Availability
Grant Total Award Allocated Funds Unallocated
Funds
CDBG (FY24-25) $424,978 $424,252 $726
PLHA Year 1 $217,980 $217,980 $0
PLHA Year 2 $338,809 $338,809 $0
PLHA Year 3 $338,000 $0 $372,500
LHTF $2,362,500 $0 $2,362,500
IIG $28,817,500 $28,817,500 $0
PIP $890,000 $0 $890,000
Funding and Policy Parameters I
• Must further Housing Element / General Plan priorities • Factors legal obligations
• State/Federal grants are often prescriptive with many administrative requirements
• Local Match Requirement (PIP, LHTF)
• Meeting precise definitions of terms like “Infill” or “National Objective” (IIG, CDBG) • Expenditure Deadlines (all)
• Local funds generally flexible
• Incorporates market conditions & risk
factors conservative funding
targets
• Considers year-to-year fluctuations
• Does NOT set new policy;
implements existing policy
• Does provide recommendations
• Annual review but no monitoring
requirement; relies on existing
requirements set by guiding policies
Funding and Policy Parameters II
Funding Plan: Production Targets
Program Funding
Source
Funding
Target
Population
/Geograph
y
HE Goal
/Program
Projects
Financing For
DeveloperLed
Affordable
Projects
1051 Mission:
LHTF, IIG, 823
500 and 522
Linden: PLHA
Y1&2, 241
$37,500,000 Citywide Programs
CRT 4.2 &
4.6 1051 Mission, 500 &
522 Linden
Regulatory /
Zoning
Updates
Planning fees.
HCD also
releases
grants
NA Citywide Goal 2 &
Goal 3
Zoning and policy
updates
Funding Plan: Preservation Targets
Program Funding
Source
Funding
Target
Population /
Geography
HE Goal
/
Program
Projects
Preserve
Housing &
Communiti
es
CDBG $80,000 Communities
with high
displacemen
t risk
Program
PRSV
1.2 718 Linden rehabilitation
AntiDisplaceme
nt Roadmap
270,
823, PBF
$415,000 Communities
with high
displacemen
t risk
Program
EQ-3.2
Community Advisory
Committee, SRO / Mobile
Home Conversion
Ordinances, Live/Work
Preference Ordinance
Funding Plan: Protection Targets
Program Funding
Source
Funding Target Population/
Geography
HE Goal /
Program
Projects
Emergency
Rental
Assistance
241 $180,000
annually
(E)LI
households
Program
EQ-8.5
Emergency rental assistance
(administered by YMCA)
Homelessnes
s / prevention
programs
205
(funded
by PIP)
$100,000
annually
Experiencing
/ at-risk of
homelessne
ss
Programs
SNP 7.2,
7.4, 8.3
Emergency shelter, legal aid,
shelter, home sharing
Housing &
Community
Development
Services
PLHA
Y3,
General
Fund
PLHA Y3:
$149,000
HOME: $12,600
General Fund:
$41,500
LMI
households
Goal 1 Homeowner assistance,
youth mentoring, oral health,
tenant legal aid
Economic
Advancement
Center (EAC)
PLHA Y3 PLHA Y3:
$223,500
CDBG: $50,000
LMI
households
Goal 1 and
Goal 6
EAC + associated nonprofits
Funding Plan Council Actions
Today
Resolutions re-allocating
201 Baden LHTF funds
1051 Mission
28 May
Resolution appropriating
$890,000 from Fund 823
to Fund 205 receive
$890,000 match from
the State (PIP)
28 May
Public Hearing on CDBG
PY25-26 Annual Action
Plan fund public
services and public
improvement projects
11 June
Resolution amending
PLHA Year 3 EAC
Alternate 1: Limited Financing Pathway
Evaluation Criteria
1) State and Federal statutory requirements
2) Regulatory and grant obligations
3) Highest impact for disadvantaged and
historically underserved communities
4) Project viability and delivery
5) Highest impact on housing priorities in
General Plan and Housing Element
Example Actions
• Reduce property acquisitions and city-led
financing programs
• Reduce non-obliged funding to non-profit
housing services
• Explore the creation of new funding sources
• Evaluate necessity for proposing funding
allocation from non-housing funds
Alternate 2: Surplus Financing Pathway
Evaluation Criteria
1) Highest impact for disadvantaged and
historically under-represented
communities
2) Project viability and delivery
3) Highest impact on housing priorities in
General Plan and Housing Element, with
consideration of balancing funding across
the 3Ps
Example Actions
• Pursue rehabilitation of 226-246 Grand
Avenue
• Create a revolving loan and/or reserve fund
that could help stabilize annual funding
availability
• Consider policies of interest to City Council
Staff Recommendation
Staff recommends City Council consider and provide feedback on the proposed Affordable Housing Financing Plan (AHFP).
Updated every two years, the AHFP will guide the City's housing funding priorities